Development lobby cautions against ‘simply’ transposing some Sofia Inquiry recommendations

Some of the recommendations made by the Jean Paul Sofia public inquiry should be “thoroughly assessed” and “not simply transposed”, the development lobby group cautioned on Tuesday.

The Malta Development Association said it agreed with most of the recommendations but requested a deeper analysis by the Cabinet committee of some of the proposals that could impact investment.

One of the issues flagged by the MDA was the recommendation that construction in industrial estates should be subject to a full development permit.

“This will significantly increase the lead time for any attraction of investment,” the MDA said, adding that a more detailed analysis was required to ensure prospective investors are not caught up in red tape.

The MDA also queried the recommendation that bank guarantees should increase to 20% of the construction value from the current 10%.

“One should consider a wider reform that classifies contractors and reflect on its broader societal implications, particularly the potential burden on homeowners due to escalating costs,” the MDA said.

“It’s imperative to recognise that augmenting bureaucratic processes may inadvertently contribute to rising housing prices,” the MDA added, noting that decision-making should prioritise the well-being of the community and promote “equitable access to affordable housing”.

The association said the Sofia Inquiry is an “important cornerstone” in the modernisation of the construction industry.

It welcomed the recommendation that it should be mandatory for all contractors to have an insurance policy to be licensed, a proposal the MDA has been pushing for several years.

The MDA suggested that the inter-ministerial committee tasked with implementing the inquiry’s recommendations should include stakeholders “to be more effective”. “One should also consider having a representative of the inquiry as part of the committee,” the organisation said.

The Cabinet committee was formed by the Prime Minister in the aftermath of the inquiry's publication. It is made up of ministers Jonathan Attard, who is responsible for reforms in the construction sector, Byron Camilleri, responsible for Jobsplus and Identità, Clint Camileri, responsible for planning, and Silvio Schembri, responsible for Malta Enterprise and INDIS.